Aramco unit signs $10bn tech deals with US firms

HOUSTON, April 9, 2018

Motiva Enterprises LLC, a wholly-owned downstream oil and gas subsidiary of Saudi Aramco, has signed technology agreements worth between $8 billion to $10 billion with US companies Honeywell UOP LLC and TechnipFMC plc.

The signing ceremony took place in Houston timed to coincide with the official visit to the US by HRH Crown Prince Mohammed bin Salman of Saudi Arabia.

One of the MOUs signed today paves the way to evaluate the use of TechnipFMC’s world scale mixed-feed ethylene production technologies in the US The second MOU enables Motiva to examine the use of UOP LLC’s world scale aromatics extraction and production technologies for benzene and paraxylene for development of a potential complex along the US Gulf Coast.

The MOUs are a first step in Motiva’s expansion into petrochemicals. Final investment decisions on these projects are not expected to be made until 2019 and are dependent on strong economics, competitive incentives, and regulatory support.

Commenting on the Crown Prince’s visit to Houston, Saudi Aramco president & CEO Amin H Nasser said, “For more than 85 years the Kingdom of Saudi Arabia and the United States have enjoyed a mutually beneficial relationship based upon the strong legacy and longstanding foundation established by the leaders of both nations. The presence of Crown Prince HRH Mohammed Bin Salman today further advances that proud heritage, bolstering Saudi Aramco’s presence and partnerships with top American companies in the energy hub of Houston.”

“We are especially honoured for His Royal Highness to witness the signing of MoUs and announcements that further strengthens Aramco’s commitment to supporting US economic growth and development through Downstream investments while also significantly investing in exploration and production technologies and innovative solutions aligned with Saudi Vision 2030 that will serve both our nations over the long term,” he added.

The Crown Prince’s visit to Houston included a number of engagements and activities driven by Saudi Aramco, such as a tour of the company’s Houston R&D Center where he was briefed on the latest upstream technology and innovation focusing on discovery and recovery of conventional and unconventional resources. It is the company’s largest research center outside Saudi Arabia.

He also visited areas affected by Hurricane Harvey which have been rebuilt as a result of Saudi Aramco US subsidiary Aramco Services Company’s contribution under the Houston Habitat for Humanity initiative.

Aramco and Saudi student volunteers embraced Houston Habitat for Humanity to assist those who lost their homes in the flood, teaming up to remove flood-soaked drywall, cabinetry and appliances in one of the Habitat neighbourhoods, which saw 100 homes sustain major damage. The company's in-kind donation of building materials and other supplies supported clean-up efforts.

The Crown Prince also attended a special gathering of Saudi Aramco’s annuitants, as a tribute to their service which is testimony of the long-standing historical ties between the company and the United States. - TradeArabia News Service